Motorists who have State Farm could see a slight increase in their premiums. The Louisiana Insurance Department has approved a statewide rate increase of four percent. Last June, State Farm lowered rates by an average of 10-percent. So what changed? Insurance Commissioner Jim Donelon says more vehicles on the road…
“Miles Driven is increasing, accidents as a result of greater miles being driven are increasing, claims being filed are increasing as well.”
The adjusted auto rates in Louisiana went into effect on April 5th. Donelon says 9.6 percent decrease in auto insurance rates that State Farm put into place last year is no longer justified as the nation starts to move out of the pandemic.
“Business and for that matter vacation and personal travel moves back towards pre-Covid levels such as existed in 2019.”
The state legislature passed a tort reform law last year that supporters say will lead to lower auto insurance rates. So why are State Farm’s rates going up? Donelon says the legislation changes the rules on how car accident lawsuits are handled in the state’s court system, but we will not see the impact until suits are settled or judges rule on cases…
“There’s no data yet available to the companies or to us as regulators to know the effect of what was done by the legislature.”
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